On this page
Disclosure document
A franchisor must give a franchisee a current disclosure document after receiving a written request from the franchisee.
A franchisee can ask for a copy of the disclosure document once every 12 months.
Franchisors must provide the document within 2 months of the request.
Changes to materially relevant facts
Franchisors must inform franchisees about changes to materially relevant facts. Franchisors must do this in writing within 14 days of becoming aware of the change.
Materially relevant facts are defined in the Franchising Code of Conduct and include:
- the owner, person or entity who controls the franchisor or franchise system changes
- legal proceedings and judgments involving the franchisor
- insolvency events
- the franchisor is going into receivership or administration.
If a change is not in the disclosure document, franchisors must let franchisees know about it.
Franchisors must give potential franchisees:
- information about new facts that relate to the franchisor’s financial details as soon as possible
- new documents that reflect the change before they sign a franchise agreement.
Specific purpose fund statements
If there is a specific purpose fund, such as a marketing fund, a franchisor must give a franchisee:
- the annual financial statement
- an auditor’s report of the financial statement, unless enough franchisees agree not to have it audited.
Other agreements
Sometimes as part of the franchise agreement the franchisor requires the franchisee or people involved in the franchisee business, such as directors, to enter into other agreements.
When this occurs, the franchisor must provide copies of these agreements 14 days before a franchise agreement is signed or when the agreements are available.
Examples of other agreements
- Hire purchase agreement
- Guarantee or loan agreement
- Confidentiality agreement
- Lease, other than a lease of the franchise premises.
Leasing agreement requirements
The franchisor must give the franchisee additional information if:
- the franchisee will have a lease or occupancy agreement with the franchisor for the premises
- the franchisors are occupying or leasing premises for their franchise from the franchisor or an associate of the franchisor.
The additional information includes:
- a copy of the lease and if applicable, occupancy agreement
- information that the lessor must give to a lessee under the relevant state or territory retail tenancy laws
- information about any incentive or financial benefit that the franchisor or its associate gets because of the lease or occupancy arrangement.